Retailers could pay more if they don’t make the chip card switch
Posted September 10, 2010 9:53 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – VISA says Canadian retailers must be on chip card technology by October 1st, or else pay the price. A liability shift comes into effect if fraudulent purchases are made.
VISA explains it’s trying to reduce fraud, so if retailers choose not to use chip technology, they’ll have to repay the affected consumer if unauthorized credit card transactions take place. It says the cost of doing so could be passed onto consumers.
Mark Startup with retail entrepreneurs association, Shelfspace, says that could hurt small businesses. He says there is an upside for us. “If we can lower the cost of fraud, then we’re lowering the cost of goods and services that consumers are purchasing.”
He adds it has been time-consuming switching to chip cards, but feels it will be worth it. Lots of retailers still aren’t using the chip – but Startup says there are those that leave things to the last minute.
